Pay Transparency Can Feel Challenging, but the Time Is Now

In 2022, Indeed introduced pay estimates on most job postings and since then has been working with employers to encourage including salary information when they post a job. The move benefits everyone. Here’s why…

What is pay transparency? At the most literal level, it’s when companies provide information about how they compensate their roles. That might mean posting pay ranges in job listings or being open about how current employees are paid.

But, of course, it’s about so much more than that.

Transparency is an opportunity: for job seekers to become empowered during the application and negotiation processes; for employees to understand how they can thrive within an organization, and feel seen and fairly paid; and for companies to streamline hiring practices, strengthen HR leadership and make real changes — changes that have ripple effects for their employer brand and employee happiness.

Transparency is a philosophy. A choice to be accountable and human-centric, to encourage open conversations about money and work. 

And transparency is, above all else, a bold move toward pay equity — it’s the right thing, right now, and we’re confident our partners feel the same. 

Women in Canada still earn about 89 cents for every dollar earned by men. The policy of pay transparency allows job seekers and employees to better advocate for themselves, and it can begin to close the gender and race pay gaps as part of wider diversity, inclusion, and belonging efforts.

Federally regulated private-sector employers with 100 or more employees are now required to report pay gap data in their annual reports and record new salary information. Prince Edward Island followed suit in 2022, and British Columbia is also looking to introduce a bill on pay transparency. The European Union is working on similar legislation.

Since 2018, Indeed has moved toward pay transparency by posting pay ranges for the vast majority of open positions at Indeed. In 2022, we took it even further and will now be emphasizing pay transparency more broadly. Our goal, ultimately, is to include accurate pay information for all jobs posted on Indeed. So how do we get this information? 

The best way, of course, is to get it directly from employers. If you provide a salary range for a job post, we’ll let people know the data is straight from you — and that matters because job seekers value transparency. When employers do not offer this information, we will calculate our own estimated salary for each job posting based on the data we have available. Indeed already uses a combination of employer and job seeker-provided salary information from Indeed and Glassdoor, as well as the job title, location, education requirements, and other job features, to estimate pay for roles. Until now, these figures have not been included in job postings. Moving forward, if we’re confident our estimate is accurate, we will include it in the post. 

“Compensation information is, unsurprisingly, one of the top factors when considering a job,” says Michelle Slater, director at Indeed. According to an Indeed survey, 75 percent of respondents say they’re more likely to apply for a job if the salary range is listed in the job posting. 

Is pay transparency a good thing? At Indeed, we’re confident the answer is yes. “Job seekers and employers can align on salary expectations, and transparency can help eliminate pay inequities,” Michelle says.

If pay transparency is implemented successfully, employees will learn they make a fair wage and know their employer values inclusion. 

But note that wording — if implemented successfully. No one solution will work for every company, and, what’s more, pay transparency is a complicated HR effort that requires a solid strategy. Talking about money can be complicated and personal, but overcoming those barriers is important. How can company leaders be transparent about pay in a way that benefits job seekers and their own organizations as well? 

This is a complex but ultimately rewarding shift in how to approach a once taboo topic. After all, the future of work in this new hybrid world will require companies large and small to be more interactive and trusting with their employees. Pay transparency is one aspect of that. 

“Indeed is founded upon putting job seekers first,” Michelle says. “I’m confident these industry changes will help job seekers match with jobs that align with their salary expectations — which is also good for employers.”